The firms will Compare MerLion’s natural product collection against validated targets.

MerLion Pharmaceuticals and Merck Banyu, the Japanese subsidiary of Merck & Co., signed a two-year drug discovery and licensing agreement.

Under the new collaboration, MerLion and Banyu will identify new drug candidates from MerLion’s natural product sample collection utilizing a range of validated targets in oncology and metabolic disease. MerLion will receive upfront payments and predefined milestones and royalties for the licensing of collaborative discoveries.

MerLion has also extended its four-year agreement based on infectious disease targets with Merck & Co.

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